1.

Dazzle, Incorporated produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

Direct materials used	$ 82,000
Direct labor used	150,700
Predetermined overhead rate (based on direct labor)	110%
Goods transferred to finished goods	451,000
Cost of goods sold	463,000
Credit sales	844,200

2.

Martin Manufacturing uses the FIFO method of process costing and reports the following data from its Forming department:

	Units	Direct materials Percent Complete	Conversion Percent Complete
Beginning work in process inventory	26,000	30%	15%
Units started this period	92,000
Units completed and transferred out	94,000
Ending work in process inventory	24,000	90%	60%

Compute the equivalent units for direct materials and conversion respectively for the Forming department.

3.

Williams Company computed its cost per equivalent unit for direct materials to be $1.60 and its cost per equivalent unit for conversion to be $2.58. A total of 374,000 units of product were completed and transferred out as finished goods during the month, and 22,000 of equivalent units remained unfinished at the end of the month. The amount that should be reported in Finished Goods Inventory is:

4.

Use the following selected information from Letterman Corporation to determine the Year 1 and Year 2 common size percentages for cost of goods sold using Net sales as the base.

	Year 2	Year 1
Net sales	$ 522,200	$ 423,400
Cost of goods sold	219,400	135,440
Operating expenses	79,990	77,090
Net earnings	40,420	28,670

5.

Use the following selected information from Corolla to determine the Year 1 and Year 2 trend percentages for net sales using Year 1 as the base.

	Year 2	Year 1
Net sales	$ 278,200	$ 231,800
Cost of goods sold	151,500	129,990
Operating expenses	54,840	52,840
Net earnings	28,420	20,220